Understanding your salary entitlements as a private sector employee in North Macedonia is essential — the Law on Labor Relations and the General Collective Agreement set out specific allowances that employers are legally required to pay. This page is part of our Employment Law practice in Skopje.

According to the Law on Labor Relations of North Macedonia, a salary comprises the basic salary, a portion based on work performance, and various allowances. The law specifies that these allowances are established for specific work conditions, such as those arising from the work schedule, including shifts, split working hours, night shifts, on-call duty, extended work hours, work on rest days, holidays mandated by law, work on Sundays, and seniority benefits.

For all private sector employees in North Macedonia, the General Collective Agreement for the private sector of the economy applies. This agreement explicitly outlines the allowances applicable to private sector workers.

Most Commonly Paid Salary Supplements

Per the law and the collective agreement, the employee’s basic hourly salary is increased by the following percentages:

• Overtime work: 35%
• Night work: 35%
• Three-shift work: 5%
• Work on weekly rest days: 50%

For work on holidays and non-working days mandated by law, employees have the right to receive compensation equivalent to their regular salary for those days, as well as a 50% increase for hours worked.

These allowances are not mutually exclusive; all applicable allowances are paid based on different criteria.

Seniority Allowance

The employee’s basic salary increases by 0.5% for each year of service. This right cannot be contractually excluded, as the Law on Labor Relations mandates that employment contracts specify the basic salary amount. Therefore, if the contract lists a certain salary amount without including the annual service-related increase, it is still assumed to be included.

It is important to note that seniority is not limited to the specific job position. Even if an employee has gained experience in a completely different role, that work experience is considered when calculating the seniority increase, regardless of their current position.

Salary Allowances for Work in More Challenging Conditions

The basic salary increases when employees work in conditions more challenging than the norm for their specific job, including:

• Work tasks exposing workers to adverse environmental conditions (e.g., smoke, soot, extreme temperatures, noise).
• Work requiring protective gear (e.g., protective shoes, gas masks).
• Work involving special dangers (e.g., fire, water, explosions).

Specific percentage amounts for these challenging conditions are not detailed in the collective agreement. Instead, it is stated that, at the branch or department level, or at the employer level, conditions and the corresponding increases are determined collectively. These increases apply uniformly to all employees working under these more challenging conditions, irrespective of their individual salary levels.

In summary, these regulations provide a comprehensive framework for determining salary components and allowances for employees, ensuring fairness and consistency in compensation.

Learn more about employee benefits and compensation on this link.

2026 Practical Checklist

If you are a private sector employee in North Macedonia, check the following: (1) Overtime pay – any hours worked beyond the standard working time must be compensated at a minimum 35% supplement. Verify your payslip reflects this. (2) Seniority – your employer must apply a 0.5% increase per year of service, counting all prior work experience regardless of sector or role. This cannot be waived by contract. (3) Holiday pay – working on a public holiday entitles you to your normal daily pay plus a 50% supplement. (4) Hazardous conditions – if your work involves adverse environmental conditions, protective gear requirements, or special dangers, a supplementary allowance must be agreed at branch or employer level. (5) Allowances can stack – overtime at night, for example, attracts both the 35% overtime and the 35% night supplement. If you believe your employer is not applying these rules correctly, consult our employment lawyers in Skopje.

Frequently Asked Questions

Is the seniority allowance mandatory even if my contract does not mention it?

Yes. The Law on Labor Relations requires that employment contracts specify the basic salary, and the 0.5% annual seniority increase is deemed included by law even if the contract is silent on the point. Your employer cannot contractually exclude it.

Does seniority count only from my current job?

No. Seniority is calculated based on your total work experience, regardless of the sector or role in which that experience was gained. Previous jobs in unrelated fields count toward your seniority calculation.

Can overtime and night work allowances be paid at the same time?

Yes. The allowances are not mutually exclusive. If you work overtime during night hours, you are entitled to both the 35% overtime supplement and the 35% night work supplement simultaneously.

What is the supplement for working on a public holiday?

You are entitled to receive your normal salary for that day (as if it were a regular working day) plus a 50% supplement on the hours actually worked during the holiday.

Who sets the allowance percentage for hazardous conditions?

The specific percentage is not fixed in the General Collective Agreement. It is determined at the branch/sector level or at the individual employer level through collective bargaining, and must apply uniformly to all employees working in those conditions.

Need legal guidance?

If you have questions about your salary entitlements or employment rights in North Macedonia, the team at Lalicic & Partners is at your disposal. Contact us through our website.